What is the formula to calculate the future value of a growing annuity with perpetuity and discount rate?

Economics Time Value Of Money Questions



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What is the formula to calculate the future value of a growing annuity with perpetuity and discount rate?

The formula to calculate the future value of a growing annuity with perpetuity and discount rate is:

FV = C * (1 + g) / (r - g)

Where:
FV = Future value of the growing annuity
C = Cash flow per period
g = Growth rate of the cash flow
r = Discount rate